Eminence Capital closure hits Entain shares
- Entain’s share price fell as much as 7% on 27 April after hedge fund Eminence Capital confirmed it is winding down.
- Eminence holds a 6.5% stake in Entain, making it the operator’s third-largest shareholder and raising concerns over near-term selling pressure.
- The closure adds to a sustained decline in the stock, which has shed roughly 44% of its value since early 2024.
Entain shares fell as much as 7% in London trading on Monday before recovering to close the day down approximately 4%, after New York hedge fund Eminence Capital announced it is shutting down following a 27-year run and returning capital to investors.
Entain’s third-biggest shareholder
Eminence, founded by Ricky Sandler in 1999, holds approximately 6.5% of the Ladbrokes, Coral and bwin parent company, making it Entain’s third-largest single shareholder. Its closure raises the prospect of sustained selling pressure on the stock as the fund unwinds its position through an orderly wind-down.
Sandler confirmed in a letter to clients, seen by Bloomberg, that at least 75% of investor capital across Eminence funds will be returned by mid-to-late June 2026. The fund manages about $7bn in assets.
Dodge & Cox remains Entain’s largest single shareholder with a 9.99% stake. The Capital Group Companies follows at 9.97%. BlackRock holds 6.3%, and activist firm Corvex Management sits at 5.33%.
Sandler served as a non-executive director on Entain’s board since January 2024 and sat on the group’s capital allocation committee. Eminence had built its Entain position above the 5% reporting threshold by June 2024, having initially acquired a 2.1% stake at the start of that year.
An activist’s record
Sandler was a vocal critic of certain strategic decisions during his time as a boardroom presence. He described the group’s £750m acquisition of Polish bookmaker STS as “tone deaf” and said Eminence was “outraged” by the decision. The capital allocation committee later recommended the disposal of Georgia-facing Crystalbet, a proposal that was ultimately shelved.
On the fund’s closure, Sandler said:
“Over the last few years, it has become increasingly difficult to apply our rigorous bottom-up investment process to rapidly shifting market conditions and an evolving market structure.”
“We believe that in recent years we have fallen short of our very high standard and your expectations. The firm has been far more than a professional endeavour to me. It has been a defining part of my life.”
Stock under pressure
Entain’s share price has shed roughly 44% since early 2024. That decline has reduced the group’s market capitalisation to around £3.6bn.
The remote gaming duty increase to 40%, which took effect in April 2026, has added to that pressure. Entain has estimated the tax hike will carry an EBITDA impact of approximately £100m in 2026, rising to £150m from 2027. In mid-April, the company disclosed that Barclays had taken a 5% stake, only for the bank to reduce its holding below the reporting threshold shortly afterwards.
The unwinding of a 6.5% block of shares represents meaningful potential overhang for a stock that has already faced sustained institutional turbulence. Investors will be watching closely for the pace of any disposals over the coming weeks, as Entain presses ahead with its FY26 guidance for online NGR growth of 5% to 7% on a constant currency basis.
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